Energy Newsletter

In the first half of 2026, renewable energy sources cover 57.7–61.8% of German electricity generation – a record. Germany imported only 1.25 TWh of electricity (vs. 9.6 TWh in 2025) and is again a net exporter. This significantly reduces dependence on fossil fuels and gas price volatility.

During summer calm periods (low wind, declining solar production), Germany experiences extreme day-ahead price jumps; during the June 2026 heat wave, electricity bills rose by ~€371 million in a week. Storage and grid expansion become critical bottlenecks.

Eon, Vattenfall, and RWE receive "appropriate" compensation for the nuclear phase-out. This provides short-term financial relief for energy companies, but strengthens long-term pressure on electricity market design and government investment in grid infrastructure.

The federal government (via KfW) acquires 25.1% of TenneT and thereby controls three of four transmission system operators (50Hertz, TransnetBW, TenneT); only Amprion remains private. This centralizes control of the electricity highway under government influence and is intended to accelerate grid expansion.

Plans for 20 gas power plants and backup capacity are financed through surcharges on electricity customers; small operators criticize that the design favors large corporations (RWE, Uniper). The cartel office has concerns. Battery storage and intelligent load management move into focus as alternatives.